Grab MY appeals dismissal of judicial review of MyCC's proposed RM86.77m fine

Grab Malaysia is appealing the recent dismissal of its judicial review application by the Malaysian High Court. The application for the judicial review was filed last month when Grab decided to challenge the Malaysia Competition Commission's (MyCC) proposed decision to fine the company RM86.77 million for allegedly imposing restrictive clauses on drivers.

Following that application filed in February, the Malaysian High Court recently dismissed it, saying that the proposed decision by MyCC "is not considered a financial decision for a judicial review", The Edge reported. It added that a written representation was made by Grab to MyCC on 30 December 2019 and the ride-hailing company is also making oral representations before a final decision is made. As such, Justice Nordin Hassan said the judicial review application "is premature and therefore, is dismissed", The Edge added. Grab was also ordered by Nordin to pay MyCC RM2,000 in costs.

In a statement to A+M, Grab's spokesperson said: "Grab notes the decision by the High Court of Malaya in Kuala Lumpur on Grab’s application for leave to commence judicial review proceedings with regard to the proposed decision dated 23 September 2019 that MyCC has issued to Grab."

The spokesperson added that this is an issue of "significant public importance" not only for Grab, but also for the wider business community. She added that the issue relates to critical questions over whether MyCC’s approach and investigation process in making the proposed decision is legal and in accordance with law.

Last year, MyCC issued a proposed decision against Grab for breaching Section 10 of the Competition Act 2010. MyCC explained that Grab was found to have abused its dominant position by imposing a number of restrictive clauses on its drivers which prevented the drivers from promoting and providing advertising services for Grabs’ competitors in the e-hailing and transit media advertising market. It added that the restrictive clauses had the effect of "distorting competition" in the relevant market that is premised on multi-sided platforms by creating barriers to entry and expansion for Grab’s existing and future competitors.

Following the proposed decision, Grab went to court in a bid to raise the issue of whether MyCC is entitled, when issuing the proposed decision, to impose a daily penalty of RM15,000 commencing with immediate effect from 23 September, the date of the proposed decision.

“MyCC has also seen it fit to announce the proposed fine and penalty by the way of a press statement dated 3 October 2019. This has led to public misperception that Grab has been found liable even before a final decision is made,” Grab’s spokesperson told A+M previously.

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